Paper: arXiv 2503.18675

Authors: Nicola Borri

Abstract

Blockchain is a technological innovation that has the potential to radically change our financial markets by providing an alternative management approach to the “promise market”, which is the foundation of our financial systems. Its disruptive potential also extends to corporate finance, where blockchain is beginning to influence valuation methods and capital allocation strategies, offering new perspectives on how companies are assessed and financed. However, for a new financial architecture based on blockchain and advancements in technology – what is commonly referred to as Fintech – to replace, in whole or in part, traditional finance, it will need to overcome significant challenges such as regulation, environmental sustainability, its association with illegal activities, and achieving greater efficiency in cryptocurrency markets. For this reason, the future of Fintech is likely to be more conventional – yet also more transparent, efficient, and regulated – ultimately evolving to resemble the traditional finance we know.

Complexity vs Empirical Score

  • Math Complexity: 2.0/10
  • Empirical Rigor: 2.5/10
  • Quadrant: Philosophers — conceptual discussion, limited math and data

Why this score: This paper is primarily a conceptual survey and perspective piece detailing the intersection of blockchain, smart contracts, and traditional corporate finance theory. It lacks formal mathematical proofs, quantitative modeling, or empirical data testing, relying instead on qualitative descriptions of mechanisms like automated market makers (Uniswap) and decentralized lending protocols (Aave).

Research Flowchart

  flowchart TD
    A[Research Goal: Assess Blockchain & Fintech Impact on Corporate Finance] --> B[Methodology: Comparative Analysis of Traditional vs. Blockchain Systems]
    B --> C[Inputs: Financial Infrastructure, Crypto Markets & Regulatory Data]
    C --> D[Analysis: Evaluate Valuation, Capital Allocation & Challenges]
    D --> E[Challenges: Regulations, Sustainability, Crime & Efficiency]
    E --> F[Findings: Fintech Evolves into a More Efficient, Regulated Traditional Finance]

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0 of 30 cited works are in the corpus; resolved via arXiv source bundles, Semantic Scholar and OpenAlex. Corpus-wide: 2518 linked papers.